NBCC India Ltd’s consolidated net profit has decreased 16% to Rs 81.90 crore in the second quarter of the fiscal year due to provisioning for expected losses in a Gurugram housing project. The company’s net profit was Rs 97.72 crore in the same period the year prior, according to a regulatory filing. However, the total income rose to Rs 2,129.09 crore from Rs 2073.89 crore in the previous year.
In the September 2023 quarter, the company’s consolidated net profit increased to Rs 159.31 crore, up from Rs 92.87 crore in the previous year. The total income for the first six months of the current fiscal year also rose to Rs 4,094.90 crore from Rs 3,927.13 crore in the previous year.
NBCC has reported a decline in profit during the September quarter despite a rise in total income due to an exceptional item of provisioning of losses of Rs 65.39 crore. This has been attributed to a residential real estate project in Gurugram called ‘NBCC Green View’.
After concerns were raised about structural cracks in the buildings, IIT Delhi advised that the buildings be vacated for safety, and a subsequent expert committee recommended demolishing the structures.
The company’s board of directors has approved a plan to settle with homebuyers and allottees way of a buyback of their flats/units. However, the response from buyers to this offer has been less than enthusiastic.
On October 6, 2023, NBCC submitted its willingness to refund the entire amount received from complainants with simple interest at 6 percent per annum to the National Consumer Disputes Redressal Commission (NCRDC). The matter is still under review, and the company continues to work towards an amicable settlement with the affected parties.